Morgan Stanley Forecasts Cloud Spending to Surge to $1.2 Trillion
Alphabet
Amazon/AWS
Meta
Microsoft
Morgan Stanley projects global cloud capital expenditure to reach $1.2 trillion in 2027, a 30% year-over-year increase and $170 billion higher than its previous estimate. The bank notes that major U.S. hyperscalers still face capacity constraints as AI demand outpaces supply.
Morgan Stanley expects global cloud capital expenditure to reach $1.2 trillion in 2027, a 30% year-over-year increase, which is $170 billion higher than its estimate from the second quarter. The bank said that the four major U.S. hyperscale cloud service providers still face capacity limitations because artificial intelligence demand continues to outpace supply. Alphabet, Amazon, and Meta have all raised their 2026 capital expenditure guidance, while Microsoft has maintained its spending outlook.
Source: 36Kr —
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